Investors faced a volatile week as significant rotations occurred in equity and bond markets, leading to increased demand for safe-haven assets on Friday. Technology stocks, particularly Meta and semiconductor companies, experienced sharp declines, causing the Nasdaq to suffer its worst day since June. This turmoil also impacted bond markets, where the 10-year U.S. Treasury yield fell below 5% for the first time in a month, marking the largest single-day dip in yield since March 2023. Market participants cited worries related to AI-driven bond issuance as a key factor behind the renewed appeal of Treasurys as a safe haven.

The trend toward safety extended globally with Asian markets reacting strongly, especially in Japan. Japanese sovereign bonds and the yen surged amid concerns over economic signals, including a rise in core inflation to its highest point this year. This inflation increase could pressure the Bank of Japan to contemplate a further interest rate hike, reflecting a broader caution across international markets in light of current economic developments and geopolitical uncertainties.

Among notable corporate movers, Volvo Car’s shares plunged by as much as 30% on news of a quarterly loss attributed to weak sales in the U.S. and China. CEO Håkan Samuelsson highlighted the challenge of selling Europe-developed car models in the Chinese market. Meanwhile, South Korea’s SK Hynix saw a strong rebound after canceling an IPO for its U.S. unit Solidigm, a move praised by analysts for removing risk and preserving the unit’s value. Apple remained a bright spot, bucking the tech sector sell-off with gains driven by strong demand for its new $2,000 iPhone Duo, which began its global rollout.

In other developments, OpenAI is nearing completion of a funding round potentially exceeding $30 billion, with investors from the United Arab Emirates leading the deal and valuing the company at $1.25 trillion. This large infusion is seen as a bridge toward a likely IPO, though it represents a reduced valuation from prior estimations. Additionally, President Donald Trump urged Elon Musk to restore the full military-grade version of SpaceX’s Starlink system in Ukraine, a move that has generated significant political attention ahead of midterm elections. Meanwhile, wealthy Chinese clients are increasingly shifting assets to American banks to avoid Beijing’s expanding crackdown on offshore wealth.